Can I retire at age 40 with 2,040,000?

Use the below retirement simulation to view the chances of a successful retirement.
Confused? Try the simple retirement calculator
About Your Retirement ?
Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:
Portfolio ?
% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $2,040,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.6%
1 years$168,461$166,961$165,497$164,068$162,672$159,584
2 years$83,397$81,843$80,338$78,879$77,463$74,363
3 years$55,046$53,486$51,984$50,538$49,146$46,132
4 years$40,873$39,318$37,831$36,410$35,051$32,146
5 years$32,371$30,825$29,359$27,966$26,645$23,857
6 years$26,705$25,171$23,726$22,365$21,084$18,415
7 years$22,660$21,139$19,716$18,387$17,147$14,599
8 years$19,627$18,120$16,721$15,425$14,225$11,797
9 years$17,270$15,777$14,402$13,138$11,979$9,671
10 years$15,385$13,906$12,556$11,326$10,207$8,015
11 years$13,844$12,380$11,054$9,857$8,778$6,700
12 years$12,560$11,112$9,810$8,646$7,607$5,640
13 years$11,475$10,042$8,765$7,633$6,634$4,774
14 years$10,546$9,128$7,875$6,775$5,815$4,060
15 years$9,741$8,338$7,110$6,043$5,120$3,466
16 years$9,038$7,650$6,446$5,410$4,525$2,968
17 years$8,418$7,045$5,866$4,861$4,012$2,548
18 years$7,867$6,510$5,355$4,381$3,567$2,193
19 years$7,376$6,034$4,902$3,959$3,180$1,891
20 years$6,933$5,607$4,499$3,585$2,840$1,633
21 years$6,534$5,223$4,138$3,254$2,542$1,413
22 years$6,171$4,875$3,814$2,958$2,278$1,223
23 years$5,840$4,560$3,522$2,694$2,045$1,060
24 years$5,538$4,272$3,257$2,457$1,838$920
25 years$5,259$4,009$3,016$2,244$1,654$799
26 years$5,003$3,768$2,798$2,052$1,490$694
27 years$4,766$3,546$2,598$1,878$1,343$603
28 years$4,547$3,341$2,415$1,721$1,212$525
29 years$4,343$3,152$2,247$1,578$1,094$456
30 years$4,153$2,977$2,093$1,448$989$397
31 years$3,975$2,814$1,952$1,330$894$346
32 years$3,809$2,663$1,821$1,222$809$301
33 years$3,653$2,522$1,700$1,124$732$262
34 years$3,507$2,390$1,589$1,034$663$229
35 years$3,370$2,267$1,485$952$600$199
36 years$3,240$2,152$1,389$877$544$174
37 years$3,118$2,044$1,300$808$493$151
38 years$3,002$1,942$1,218$745$447$132
39 years$2,893$1,847$1,141$687$405$115
40 years$2,789$1,757$1,069$633$368$100
41 years$2,691$1,673$1,003$584$333$88
42 years$2,597$1,593$941$539$303$76
43 years$2,508$1,518$883$498$275$67
44 years$2,424$1,447$828$460$249$58
45 years$2,343$1,380$778$424$226$51
46 years$2,266$1,316$731$392$205$44
47 years$2,193$1,256$686$362$187$39
48 years$2,123$1,199$645$335$169$34
49 years$2,056$1,145$606$309$154$29
50 years$1,992$1,094$570$286$140$26

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,040,000, adding $4,670 every year, while hoping to spend $33,807 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 49/40/11 Blend
39$2,040,000$2,040,000$2,040,000$2,040,000
40$2,252,897$2,144,777$2,113,157$2,356,349
41$2,446,722$2,213,901$2,147,977$2,496,962
42$2,659,184$2,285,278$2,182,831$2,645,683
43$2,892,149$2,358,985$2,217,684$2,806,454
44$3,147,670$2,435,097$2,252,499$2,980,414
45$3,428,012$2,513,696$2,287,236$3,168,812
46$3,735,665$2,594,863$2,321,854$3,373,026
47$4,073,375$2,678,684$2,356,309$3,594,568
48$4,444,168$2,765,247$2,390,554$3,835,104
49$4,851,373$2,854,645$2,424,537$4,096,464
50$5,298,661$2,946,970$2,458,207$4,380,665
51$5,790,074$3,042,322$2,491,507$4,689,923
52$6,330,067$3,140,801$2,524,378$5,026,681
53$6,923,545$3,242,512$2,556,756$5,393,622
54$7,575,914$3,347,562$2,588,575$5,793,706
55$8,293,129$3,456,064$2,619,764$6,230,185
56$9,081,751$3,568,134$2,650,249$6,706,643
57$9,949,008$3,683,891$2,679,950$7,227,025
58$10,902,864$3,803,459$2,708,786$7,795,673
59$11,952,094$3,926,966$2,736,668$8,417,370
60$13,106,365$4,054,545$2,763,503$9,097,381
61$14,376,329$4,186,332$2,789,196$9,841,505
62$15,773,722$4,322,471$2,813,642$10,656,127
63$17,311,477$4,463,106$2,836,733$11,548,279
64$19,003,841$4,608,392$2,858,357$12,525,705
65$20,866,513$4,758,483$2,878,392$13,596,937
66$22,916,793$4,913,545$2,896,714$14,771,368
67$25,173,741$5,073,744$2,913,189$16,059,348
68$27,658,360$5,239,254$2,927,679$17,472,274
69$30,393,792$5,410,258$2,940,036$19,022,702
70$33,405,539$5,586,940$2,950,106$20,724,464
71$36,721,698$5,769,494$2,957,729$22,592,794
72$40,373,232$5,958,121$2,962,734$24,644,477
73$44,394,260$6,153,026$2,964,944$26,898,002
74$48,822,376$6,354,426$2,964,170$29,373,739
75$53,699,006$6,562,540$2,960,218$32,094,128
76$59,069,800$6,777,600$2,952,881$35,083,893
77$64,985,060$6,999,843$2,941,943$38,370,270
78$71,500,216$7,229,516$2,927,178$41,983,270
79$78,676,348$7,466,872$2,908,349$45,955,954
80$86,580,764$7,712,177$2,885,207$50,324,749
81$95,287,632$7,965,704$2,857,491$55,129,791
82$104,878,684$8,227,737$2,824,930$60,415,301
83$115,443,981$8,498,567$2,787,237$66,230,002
84$127,082,770$8,778,500$2,744,113$72,627,578
85$139,904,417$9,067,851$2,695,244$79,667,181
86$154,029,436$9,366,944$2,640,303$87,413,988
87$169,590,632$9,676,118$2,578,947$95,939,812
88$186,734,351$9,995,723$2,510,817$105,323,784
89$205,621,863$10,326,120$2,435,537$115,653,095
90$226,430,879$10,667,687$2,352,714$127,023,822
91$249,357,236$11,020,811$2,261,937$139,541,826
92$274,616,740$11,385,896$2,162,777$153,323,761
93$302,447,202$11,763,360$2,054,785$168,498,164
94$333,110,688$12,153,635$1,937,491$185,206,675
95$366,895,985$12,557,171$1,810,405$203,605,365
96$404,121,336$12,974,433$1,673,014$223,866,217
97$445,137,434$13,405,901$1,524,781$246,178,739
98$490,330,739$13,852,078$1,365,149$270,751,759
99$540,127,124$14,313,479$1,193,531$297,815,391
100$594,995,894$14,790,642$1,009,317$327,623,206